The Beckham Law (Régimen Especial para Trabajadores Desplazados) is a special tax regime in Spain that allows qualifying foreign workers to be taxed as non-residents for up to six years. Instead of Spain’s progressive income tax rates (which can exceed 45%), qualifying individuals pay a flat 24% on Spanish-sourced income up to €600,000.
Eligibility
- Not a Spanish tax resident in the five years before moving to Spain.
- Move to Spain for work: Employment contract, remote work for a foreign company, or appointment as a director of a Spanish company.
- Company directors: Must not own more than 25% of the company.
- Apply within 6 months of starting work in Spain.
Tax Rates
- 24% on Spanish-sourced income up to €600,000.
- 47% on income above €600,000.
- Foreign income: Not taxed in Spain (only Spanish-sourced income is taxed).
- Wealth tax: Generally not applicable under this regime (only Spanish assets are considered).
Example
Someone earning €150,000 in Spain would pay approximately 43% under the standard progressive system. Under the Beckham Law, they pay 24%, saving roughly €28,500 per year.
Duration
The regime applies for the year of arrival plus five additional years (six years total). It cannot be renewed. After it expires, the individual becomes subject to Spain’s standard progressive tax rates.
How to Apply
Submit Form 149 to the Spanish Tax Agency within six months of starting work in Spain. Missing this deadline means losing the benefit entirely. The application requires documentation of employment, proof of non-residency in Spain for the previous five years, and other supporting materials.
Important Considerations
- Self-employed: Most freelancers and self-employed individuals do not qualify. The regime is primarily for employees and company directors.
- Family members: Spouses and dependent children can be included under the regime if they also meet the requirements.
- Compliance: The Spanish tax authorities monitor lifestyle and economic interests to ensure the arrangement is legitimate.
The Beckham Law is a useful option for high earners relocating to Spain. The flat 24% rate and exemption of foreign income can produce significant savings over the six-year period. However, the eligibility criteria are specific, and the application deadline is strict. Working with a Spanish tax advisor before the move helps ensure you qualify and file on time.
Disclaimer: This article is for informational purposes only and does not constitute professional tax advice. Tax laws change frequently, and individual circumstances vary. Always consult a qualified tax advisor before making financial decisions.